Prapan Charoenprawatt, President – SAAM
Market for Alternative Investment (mai) will list SAAM Energy Development pcl, the developer of renewable power plant projects for sale, onJanuary 7, under the ticker symbol “SAAM”. The company has a market capitalization at its initial public offering (IPO) of THB 540 million (approx. USD 16.36 million).
SAAM’s businesses cover three areas (1) Investing in the lease hold rights or land ownership for Bangkok Solar Power Co., Ltd. (BSP) to operate the solar power plant projects with total capacity of 41.1 megawatts, including security and maintenance services in the compound by obtaining monthly fee under the 20 or 25-year contract; (2) Producing and distributing solar energy power plant in Lopburi province, with a contracted and installed capacity of 2.0 megawatts at Feed-in-Tariff (FiT) rate of THB 5.66/kilowatt-hour for 25 years; and (3) Developing renewable power plants for sale both In Thailand and overseas. The company has developed two bio-mass power plants in Japan for sale with installed capacity of 19.9 megawatts which have received the grid interconnection approval and METI certification with FiT rate of 24 yen/ kilowatt-hour for 20 years. The company is also doing feasibility studies for six projects in Japan, through its subsidiaries.
SAAM has a registered paid-up capital of THB 150 million, consisting of 220 million existing common shares and 80 million newly issued shares, with a par value of THB 0.50 each. It offered 77.8 million newly issued shares to patrons of the underwriter, 0.2 million shares to employees and executives (excluding directors) of the company and subsidiaries, during December 24-27, 2018 at THB 1.80 each, for a total of THB 144 million. Trinity Securities Co., Ltd. is its financial advisor and lead underwriter.
SAAM Chief Executive Officer Podduang Kongkamee said that the fund raised would strengthen the group’s credibility and financial capability. It would be used as working capital for the projects being developed overseas; for investing in businesses related to renewable energy plants; as loan repayment and working capital.
SAAM’s three major shareholders after IPO are Mr. Podduang Kongkamee and spouse (66.67 percent), Mr. Soros Kongkamee (6.67 percent), and Trinity Securities Co., Ltd. (2.28 percent). The IPO price was equivalent to price-to-earnings (P/E) ratio of 33.46 times, calculated by using the company’s net profit in the past 12 months (October 1, 2017 – September 30, 2018) amounting to THB 16.13 million, divided by fully diluted shares, representing earnings per share of THB 0.0538. SAAM’s dividend policy is to pay no less than 40 percent of net profit from the company’s or subsidiaries’ separate financial statements after corporate income tax and legal reserves.
